ST. LOUIS (AP) - Ralcorp Holdings Inc.'s board has approved the planned spinoff of its Post cereals business, the food maker said Tuesday.
Post makes cereals brands including Honey Bunches of Oats, Grape Nuts and Post Raisin Bran. Ralcorp, which makes a variety of store-brand foods, announced the planned spinoff in July. On Friday Ralcorp announced who would serve on each company's board.
The St. Louis company said it will complete the separation of the two businesses by giving at least 80 percent of Post Holdings Inc.'s outstanding stock to Ralcorp shareholders of record as of Jan. 30. Each stockholder will get one share of Post for every two shares of Ralcorp held on the record date. Ralcorp will maintain a stake in Post.
No fractional shares of Post will be distributed.
The stock distribution is set to happen Feb. 3. An extension could occur if the conditions tied to the distribution have not been met or are waived.
Post is expected to have about 34.5 million outstanding shares immediately after the separation.
Ralcorp's stock will continue to trade on the New York Stock Exchange under the "RAH" ticker symbol. Post is expected to start trading on the NYSE under the "POST" ticker symbol Feb. 3.